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Profits up at Go-Ahead Group despite floundering Southern rail franchise

Newcastle-registered transport firm Go-Ahead Group has enjoyed a modest 5% jump in profits according to its preliminary full year results, published this morning.

The figures show that profits at the group for the year ending 2 July rose to £120.4m from £114.7m the previous year with strong growth in both its regional (9.4%) and London (6.3%) bus operations.

Revenue also rose, touching just over £3.36bn for the year which is 4.5% higher than the £3.2bn it brought in for 2015.

Its bus operations also continued to lead the way, posting an operating profit of £91.2m although growth was matched by its smaller train operations which rose to £26.2m from £16.1m the previous year.

David Brown, Group Chief Executive, commented: “I am pleased with the Group’s financial performance in the year; with overall adjusted operating profit of £157.4m, slightly ahead of our expectations.”

However, the group has come in for significant criticism for its mishandling of the Southern rail franchise in the South East which has been blighted by service cancellations, delays and strikes.

The transport group, which runs the franchise under its Thameslink Govia arm, received a £20m funding package yesterday to help improve its services across the troubled network.

Touching upon the controversy, Brown apoligised to commuters and said: “During this period of change, Southern services have been disrupted by restricted network capacity, strike action and increased levels of absence.

“We apologise to the people whose lives have been affected during this time. We continue to work closely with the DfT, Network Rail and other suppliers and partners to operate the best service possible while delivering the long term improvements.”

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